Issue - meetings

To consider the report

Submitted – the report of the Pensions Manager updating the Board on the work being done in response to the McCloud case. Members were reminded that when the public sector pension schemes were reformed in 2014 and 2015, safeguarding measures were introduced for older members to ensure that the amendments would not have a negative effect on their pensions. Nevertheless, in December 2018, the Court of Appeal declared that some members had suffered discrimination as the protections did not apply to them. Consequently, the Government had to consider giving protection to younger members which was equal to the basic protection provided to older members in order to remove the discrimination.

The work of removing the 'discrimination' was referred to as the McCloud Project and although it was accepted that it would be a substantial project for the Fund and its employers, with very little change in the value of member benefits at the end of the project, this was an excellent opportunity to ensure that correct and current data was recorded on the Pensions Dashboard.

When collaborating with Hymans Robertson it was reported that approximately 11,500 members of the Fund were affected by the McCloud case and that there would be a need to implement some kind of review on them.  Following a request for information by 22 Fund employers, it was reported that the information that had already come to hand was in a good condition.

It was reiterated that the work was specialist and that experienced staff was needed to undertake the work for accuracy. In January 2022, expenditure for 3 temporary posts was approved in order to assist with the work, but with staff recruitment being a challenge to funds across the UK, it was noted that two of the posts remained unfilled. Nevertheless, following recent re-advertisement, it was reported that 12 applications had been received and that this was encouraging. Despite the situation with the posts, it was reported that the work had started well and that the Pensions Department was confident, with the collaboration of the employer, that the work could be completed successfully, once a full team was in place.

Gratitude was expressed for the report.

During the ensuing discussion, the following observations were noted

·         Welcomed  the number of applications for the post

·         The team was thanked for its work – despite the praiseworthy commitment, the work on the McCloud project would not bring benefits to many.

RESOLVED to accept the information